Canada prepares retaliatory tariffs against United States
Canada was expected to announce retaliatory tariffs against the United States on Tuesday after relations deteriorated sharply on Monday.
US President Donald Trump told Canadian leaders to “fall in line” or face consequences “far WORSE” than existing tariffs and Canadian Prime Minister Mark Carney accused Washington of trying to subordinate Canada.
Mr Trump also threatened new 50% tariffs on Canadian vehicles, auto parts and steel, while Mr Carney said US trade demands showed Washington wanted to “destroy our major industries”, including autos, steel and aluminium.
Finance minister Francois-Philippe Champagne and three other Cabinet ministers are scheduled to unveil Canada’s response on Tuesday morning.
Mr Carney said earlier on Monday that Canada may need to move away from matching US tariffs dollar for dollar and instead use more targeted retaliation aimed at protecting Canadian workers and businesses.
“An attitude at the negotiation table that Canada is a subsidiary of the United States” is “not something we’re going to accept”, the former Bank of England governor said.
He was even more blunt in French, saying: “We learned during the negotiations that the Americans want to destroy our major industries, including autos, steel and aluminum. That was one of the main reasons we said no. It was a bad deal.”
The fiery words from both sides show how US-Canada relations have deteriorated since Mr Carney walked away from trade negotiations with the Trump administration late on Friday, triggering the president’s threatened 50% tariffs the next day on about 20 billion dollars (£14.7 billion) worth of Canadian goods.
Canada and the United States share one of the world’s largest trading relationships, with deeply integrated supply chains across autos, energy, agriculture and manufacturing, making a prolonged trade fight potentially costly for businesses and workers on both sides of the border.
Mr Carney cast doubt on the US’s dependability, saying Canada was finding reliable partners “everywhere in the world, except in the United States. Except in the United States. And Russia”.
On Monday, Mr Trump warned he would impose fresh tariffs on Canada’s auto industry beginning next year.
“Canada has been ripping off the United States of America for years,” he wrote on social media, criticising what he called the country’s “ridiculously high tariffs” on American farmers.
Mr Carney said Washington’s auto-sector proposals would gradually have the effect of dismantling Canadian production.
Ontario Premier Doug Ford unleashed his own tirade, saying Mr Trump had underestimated Canadians’ willingness to endure economic pain rather than give in to US pressure.
“We’re all in,” Mr Ford said. “Up here, we’re at a fever pitch; everyone’s in for an economic war. They know they’re going to have to sacrifice.”
Mr Trump responded in a social media post by attacking Mr Ford personally, calling him “the less charismatic, intelligent, and overall unimpressive brother of the late, great, Rob Ford,” and once again referring to Canada’s prime minister as “Governor Carney”.
Mr Ford dismissed the insults, saying: “If you think an insult from him hurts me? Well, bring it on, buddy, I’m ready.
“He wants to bleed out every single sector and bring them down to the US.”
Mr Carney said the dispute also exposed a deeper divide over language and culture, saying protections for French and Canadian culture that Washington views as trade irritants are considered fundamental rights in Canada.
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